Squilliam on 06 January 2009
| Grampy said: A lot of the confusion is apparently being caused by a state of near open warfare between British born CEO Sir Howard Stringer and an entreanched beuracracy in Japan. The stockholders are apparently demanding that he take charge and make deep radical cuts with everything on the table. Japan executives claim that they are planning no more cuts than already announced. Ken Kutaragi, the so-called "Father of the PlayStation was an early casualty of this conflict when he was canned by Stringer for essentially ignoring him on making cost saving measures on the PS3. To maintain any stockholder confidence, Stringer is going to have to do something dramatic and the very high profile of the PS3 as a money drain makes it a likely target, The question is whether the machine gets the axe or it's pricetag gets axed in order to boost sales. The least useful and perhaps likely strategy is to do nothing, A possible alternative would be to axe the PSP. To keep two non-profitable platforms could lead to a complete stock collapse. The answer will probably be announced after CES. |
Actually I would say that would be the most useful strategy for the PS3. Do nothing with the price, just let the money come in from the sales of the blockbuster titles that they have been subsidising for the last 3-4 years. Essentially just let the product decline on its own and keep the revenue on hand in the short term. They must be paying something close to 15-20% interest if not higher considering their financial situation isn't looking rosy and they are getting loans to cover the day to day operating expense in a recession.
Tease.
